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Revolve Group (Revolve Group) Operating Margin % : 0.85% (As of Dec. 2023)


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What is Revolve Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Revolve Group's Operating Income for the three months ended in Dec. 2023 was $2 Mil. Revolve Group's Revenue for the three months ended in Dec. 2023 was $258 Mil. Therefore, Revolve Group's Operating Margin % for the quarter that ended in Dec. 2023 was 0.85%.

Warning Sign:

Revolve Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -19.1%.

The historical rank and industry rank for Revolve Group's Operating Margin % or its related term are showing as below:

RVLV' s Operating Margin % Range Over the Past 10 Years
Min: 2.07   Med: 8   Max: 11.81
Current: 2.07


RVLV's Operating Margin % is ranked worse than
59.17% of 1107 companies
in the Retail - Cyclical industry
Industry Median: 3.51 vs RVLV: 2.07

Revolve Group's 5-Year Average Operating Margin % Growth Rate was -19.10% per year.

Revolve Group's Operating Income for the three months ended in Dec. 2023 was $2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $22 Mil.


Revolve Group Operating Margin % Historical Data

The historical data trend for Revolve Group's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Revolve Group Operating Margin % Chart

Revolve Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial 8.00 10.52 11.81 6.64 2.07

Revolve Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.11 4.38 2.69 0.13 0.85

Competitive Comparison of Revolve Group's Operating Margin %

For the Internet Retail subindustry, Revolve Group's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Revolve Group's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Revolve Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Revolve Group's Operating Margin % falls into.



Revolve Group Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Revolve Group's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=22.134 / 1068.719
=2.07 %

Revolve Group's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=2.199 / 257.778
=0.85 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Revolve Group  (NYSE:RVLV) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Revolve Group Operating Margin % Related Terms

Thank you for viewing the detailed overview of Revolve Group's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Revolve Group (Revolve Group) Business Description

Traded in Other Exchanges
Address
12889 Moore Street, Cerritos, CA, USA, 90703
The Revolve Group is an emerging e-commerce retailer, selling women's dresses, handbags, shoes, beauty products, and incidentals across its marketplace properties, Revolve and FWRD. The platform is built to suit the "next-generation customer," emphasizing mobile commerce, influencer marketing, and occupying an aspirational but attainable luxury niche. With $1.1 billion in 2022 net sales, the firm sits just outside the top 30 apparel retailers (by sales) in the U.S., but has consistently generated top-line growth north of 20%-25% as the industry continues to favor digital channels. Revolve generates approximately 20% of sales from private-label offerings, while focusing on building an inventory of unique products from emerging fashion brands with less than $10 million in annual sales.
Executives
Michael Mente director, 10 percent owner, officer: See Remarks C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Michael Karanikolas director, 10 percent owner, officer: See Remarks C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Mmmk Development, Inc. 10 percent owner C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Oana Ruxandra director C/O WARNER MUSIC GROUP CORP., 1633 BROADWAY, NEW YORK NY 10019
Marc D Stolzman director C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Jesse Timmermans officer: CHIEF FINANCIAL OFFICER C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
David Pujades officer: CHIEF OPERATING OFFICER 16800 EDWARDS ROAD, CERRITOS CA 90703
L.p. Tsg6 10 percent owner TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Hadley Mullin director C/O TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Melanie Cox director C/O REVOLVE GROUP, INC., 12889 MOORE ST., CERRITOS CA 90703
Jennifer Baxter Moser director C/O TSG CONSUMER PARTNERS, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111
Tsg6 Management L.l.c. 10 percent owner C/O TSG CONSUMER PARTNERS, LLC, 600 MONTGOMERY STREET, SUITE 2900, SAN FRANCISCO CA 94111